RBA Deputy Governor Hauser Flags Stubborn Inflation, Warns Against Persistence

• RBA Deputy Governor Andrew Hauser warns that price pressures are still "too high" and pose an ongoing challenge.
• Hauser suggests recent inflation firmness may be due to demand picking up in a supply-constrained economy, risking persistent high inflation.
• The RBA recently resumed rate hikes and expects both headline and underlying inflation to exceed its 2-3% target range.
• Hauser notes Australia's inflation pressures partly reflect the RBA's earlier soft-landing strategy, making the economy susceptible to activity resurgence.
• The RBA has revised down its potential growth rate to 2%, emphasizing the need to "respect the speed limit of the economy" to avoid reigniting inflation.